XRP had a strong start to the new year. The price has risen 10% in the last 24 hours. This rally occurred as 350 million XRP were accumulated over the past two days.
Subsequent on-chain data points to additional upward momentum, suggesting that the XRP rally is not over. What will the next move be for the cryptocurrency?
XRP Holders to Begin Massive Accumulation in 2025
On December 31, 2024, the value of XRP was $2.12. At the time of writing, it has risen to $2.36, recording the largest gain among the top 10 cryptocurrencies.
According to BeInCrypto's research, this price increase may be related to significant XRP accumulation. Sentiment data shows that addresses holding between 100 million and 1 billion XRP increased their total balance from 9.36 billion to 9.71 billion on Tuesday, purchasing 350 million tokens for $826 million.
Such large-scale accumulation generally indicates strong buying pressure. If this trend continues, XRP's price could see additional upward momentum.
In addition to this buying pressure, on-chain data shows that the social dominance of the cryptocurrency has increased significantly. Social dominance measures the level of market attention given to a particular token.
An increase in this dominance indicates that there is active discussion about the token among the top 100 assets. Conversely, a decrease would mean the opposite.
At the time of reporting, XRP's social dominance has risen to 5.61%. This suggests that if the demand for the token maintains the current level of attention, it could continue to increase. This means that XRP's price has a good chance of starting above $3 in the first month of this year.
XRP Price Prediction: Bullish Trend to Continue
With XRP closing the year above $2, the daily chart shows the altcoin has formed a bullish flag pattern. The bullish flag pattern is considered an important signal in cryptocurrency analysis.
It forms after a strong uptrend, followed by a brief correction. This often leads to another sharp price increase as investors expect the uptrend to continue. Typically, a price drop below the flag would indicate a correction. However, in this case, XRP's price has broken above the flag, suggesting the altcoin's value could rise to $3.25.
If XRP accumulation is significantly strengthened, the price could move even higher. However, if the token experiences notable selling pressure, the trend could reverse, and the price could drop to $1.80.
